Shares of Paccar Inc. rallied 1.8% in premarket trading Tuesday, after the truck manufacturer reported record first-quarter profit and revenue that beat expectations, citing “robust” freight activity, high truck utilization and benefits from its ecommerce investments. Net income rose to $470.1 million, or $1.35 a share, from $359.4 million, or $1.03 a share, in the year-ago period. The FactSet consensus for earnings per share was $1.29. Revenue grew 13.3% to $5.41 billion, beating the FactSet consensus of $5.36 billion. “Customer demand for Kenworth, Peterbilt and DAF trucks is very strong,” said Chief Executive Preston Feight. “Truck deliveries increased in the first quarter of 2021 compared to the fourth quarter of 2020 despite the undersupply of semiconductors affecting the automotive industry.” The stock has lost 3.2% over the past three months through Monday, while the S&P 500 has gained 11.7%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.